Use the ExpressDesign into Rectangle 
option to create a new design in the ExpressDesign Wizard that is a best-fit to a rectangular area you draw.
In the Insert ExpressDesign 
drop-down, click ExpressDesign into Rectangle 
and the mouse pointer will change to the draw rectangle pointer
. Click and drag on the work area to draw a rectangle of the desired size. When you release the mouse button, the Choose Design Type page of the ExpressDesign Wizard will appear.
If the rectangle is wrong and you wish to try again, click Cancel when the ExpressDesign Wizard appears. Then click ExpressDesign into Rectangle again.
Choose the desired design type, then choose a picture and step through the rest of the ExpressDesign Wizard. When you Finish, the new design will be placed where you drew the rectangle, and will fit the rectangle proportionally, depending on the picture shape. Use Save
to keep the new design. Use Export 
to save in other formats, and optimize for stitching.
Shortcuts
-
Home Tab, ExpressDesign Wizard Drop-Down:
-
Keys: Alt, H, IR, IR
Insert an ExpressDesign in the Work Area
-
In the Home tab, click Insert ExpressDesign
, and Into Rectangle 
. The mouse pointer will change to the draw rectangle pointer 
. -
Click and drag on the work area to draw a rectangle of the desired size. When you release the mouse button, the Choose Design Type page of the ExpressDesign Wizard will appear.
-
Choose the desired design type and click Next.
-
Choose a picture then step through the rest of the ExpressDesign Wizard. The pages will appear according to the chosen design type.
-
At the end of the wizard click Finish. The new design will be placed where you drew the rectangle, and will be a best fit to the rectangle depending on the picture shape.
-
Move, resize, mirror, rotate, copy and cut the new design as desired. When the new design is positioned and sized as desired, right-click to deselect it.
If the rectangle is wrong and you wish to try again, click Cancel when the ExpressDesign Wizard appears, then select Insert ExpressDesign again.
The rectangle you drew is used to automatically set the size of the new design, according to the portion of the design area you selected with the rectangle and the current hoop. Hence, the Design Size page of the wizard will not appear.